Business Group: A Business/Corporate group is a collection of parent and subsidiary corporations/companies that function as a single economic entity through a common source of control.

Business Group can be defined as a group of companies that does business in different markets under common administrative or financial control whose members are linked by relations of interpersonal trust on the bases of similar personal ethnic or commercial background a business group. One method of defining a group is as a cluster of legally distinct firms with a managerial relationship. The relationship between the firms in a group may be formal or informal.

The Business Group represents the highest level in the organization structure, such as the consolidated enterprise, a major division, or an operation company.

 Legal Entity: A legal entity has legal capacity to enter into agreements or contracts, assume obligations, incur and pay debts, sue and be sued in its own right, and to be held responsible for its actions. A legal company for which you prepare fiscal or tax reports. You assign tax identifiers and other legal entity information to this type of organization and it is distinct and independent of those persons who from time to time are its members.

Operating Unit: An organization that uses Oracle subledgers, such as Oracle Cash Management, Order Management and Shipping Execution, Oracle Payables, Oracle Purchasing, Oracle Receivables, and related products. It may be a sales office, a division, or a department. Operating units are not associated with legal entities. Operating units are assigned to ledgers and a default legal context. Information is secured by operating unit for these applications using responsibilities. Each user can access, process, and report on data only for the operating units assigned to the "MO: Operating Unit" or "MO: Security Profile" profile option. The "MO: Operating Unit" profile option only provides access to one operating unit. The "MO: Security Profile" provides access to multiple operating units from a single responsibility.

Inventory Organization: An organization for which you track inventory transactions and balances, and/or an organization that manufactures or distributes products. Examples include (but are not limited to) manufacturing plants, warehouses, distribution centers, and sales offices. The following applications secure information by inventory organization: Oracle Inventory, Bills of Material, Engineering, Work in Process, Master Scheduling/MRP, Capacity, and Purchasing receiving functions. To run any of these applications, you must choose an organization that has been classified as an inventory organization.

HR Organization: HR organizations represent the basic work structure of any enterprise. They usually represent the functional management, or reporting groups that exist within a business group. In addition to these internal organizations, you can define other organizations for tax and government reporting purposes, or for third party payments.

Ledger: A ledger is the principal book for recording transactions like revenues, expenses, accounts receivable and accounts payable.